2014 ANNUAL REPORT

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Consolidated Financial Report | DIRECTORS’ REPORT
2014 Annual Report
Prysmian Group
74
ALTERNATIVE PERFORMANCE INDICATORS
In addition to the standard financial reporting formats and
indicators required under IFRS, this document contains
a number of reclassified statements and alternative per-
formance indicators. The purpose is to help users better
evaluate the Group's economic and financial performance.
However, these statements and indicators should not be
treated as a substitute for the standard ones required by
IFRS.
The alternative indicators used for reviewing the income
statement include:
• Adjusted net profit/(loss): net profit/(loss) before
non-recurring income and expenses, the fair value
change in metal derivatives and in other fair value items,
the effect of currency and interest rate derivatives,
exchange rate differences, non-monetary interest on
the convertible bond and the related tax effects;
• Adjusted operating income: operating income before
non-recurring income and expenses and the fair value
change in metal derivatives and in other fair value items,
as reported in the consolidated income statement.
The purpose of this indicator is to present the Group's
operating profitability without the effects of events
considered to be outside its recurring operations;
• EBITDA: operating income before the fair value change
in metal price derivatives and in other fair value items
and before amortisation, depreciation and impairment.
The purpose of this indicator is to present the Group's
operating profitability before the main non-monetary
items;
• Adjusted EBITDA: EBITDA as defined above calculated
before non-recurring income and expenses, as reported
in the consolidated income statement. The purpose of
this indicator is to present the Group's operating prof-
itability before the main non-monetary items, without
the effects of events considered to be outside the
Group's recurring operations;
• Adjusted EBITDA before share of net profit/(loss) of
equity-accounted companies: Adjusted EBITDA as
defined above calculated before the share of net profit/
(loss) of equity-accounted companies;
• Organic growth: growth in sales calculated net of
changes in the scope of consolidation, changes in metal
prices and exchange rate effects.
The alternative indicators used for reviewing the reclassified
statement of financial position include:
• Net fixed assets:sum of the following items contained in
the statement of financial position:
- Intangible assets
- Property, plant and equipment
- Equity-accounted investments
- Available-for-sale financial assets, net of non-current
securities classified as long-term financial receivables
in the net financial position
• Net working capital:sumof the following items contained
in the statement of financial position:
- Inventories
- Trade receivables
- Trade payables
- Other non-current receivables and payables, net of
long-term financial receivables classified in the net
financial position